Owner-drivers still part of City Link model

[TrueBlueTerrier]

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City Link insists owner-drivers are still vital to its delivery model, but that its reliance on ad-hoc subbies needs to be slashed.

Speaking exclusively to CM, Duncan Faithfull, City Link sales and marketing director, says: "We want to make it clear that we still have a commitment to subcontractor drivers and their fleets. We have no issue with owner-drivers in the City Link branding, as they have been a very successful part of the business. But what we do need to change is our over-reliance on ad-hoc subcontractors who really should only be used at peak times."

Faithfull's statement is in response to City Link's parent company Rentokil Initial blaming a reliance on subcontractors as playing a large part in City Link's operating loss of £9.6m (CM 24 February).

As part of a recovery plan, City Link is: increasing its full-time employees to 75% from 50%; reducing owner-drivers from 25% to 15%, and having a maximum of 10% of ad-hoc subcontractors.

In addition, Rentokil CEO Alan Brown has pledged that by October technology investments will be implemented to improve route planning and fuel utilisation.

Faithfull continues: "This restructure ensures 90% of drivers will be in City Link-liveried vehicles, and we will be introducing a new revamped uniform in Q3. The company branding is very important to us, and I think recruiting more full-time employees is a good thing to hear in the current economy."

As a result of the restructure and investments, City Link intends to be back in black by the end of 2011.

[DGP1]

How much were they paying their owner drivers? or should that be How little to they pay their staff?

[Lounge Lizard]

How much were they paying their owner drivers? or should that be How little to they pay their staff?

Probably about 50p for each parcel delivered, nothing if there's nobody in and it's returned to the depot.

[Dorset Plodder]

I have my own ex-Royal Mail bicycle (one not so careful owner)is it worth applying for a job?
If they don't get get their 50p ,if no-one's in, that perhaps explains why I saw one of their drivers going up and down the road trying to find a neighbour who WAS in!
In that situation I would have just 739 the inconsiderate customer!